Fintech Brief — March 23, 2026

Today’s Top Stories

1. NPCI Slashes RuPay Credit Card UPI Fees; PhonePe, Google Pay to Benefit

The National Payments Corporation of India (NPCI) has announced a reduction in UPI fees for RuPay credit card transactions, effective April 1, 2026. The revised fee structure lowers third-party app provider (TPAP) fees from 8 to 6 basis points for non-industry players and from 4 to 3 basis points for industry players. This change impacts consumer-facing UPI apps like Paytm, Google Pay, and PhonePe, potentially improving their margins on high-volume transactions. PhonePe and Google Pay, which process combined billions of transactions monthly, stand to gain the most from reduced fee outflows to NPCI. The fee reduction does not affect offline small merchants, EMI transactions, or merchant MDR rates. ¹

2. RBI Exploring ‘Agentic Payments’ — AI Agents Could Soon Execute UPI Transactions

The Reserve Bank of India is exploring the regulation of AI-driven payment systems, including the potential for AI agents to autonomously execute transactions via UPI. This marks a significant shift toward “agentic payments” where artificial intelligence systems could handle complex payment workflows without human intervention. NPCI is simultaneously working on streamlining UPI One World to expand global interoperability for international transactions. The RBI’s Payments Banks — Prudential Norms on Capital Adequacy Amendment Directions, 2026, issued on March 10, 2026, introduced updated risk weights for counterparty credit risk, aligning with international standards for derivatives and securities financing transactions. ²

3. PhonePe Shelves IPO Amid Global Market Volatility

India’s largest digital payments platform, PhonePe, has put its IPO plans on hold, citing geopolitical tensions and volatile stock markets. The Walmart-backed company, which processes approximately 9.3 billion transactions worth ₹13.1 trillion monthly, was reportedly considering a valuation around $9 billion — down from earlier expectations. PhonePe leads the UPI ecosystem in transaction volumes, ahead of Google Pay, which handled 6.8 billion transactions worth around ₹9 trillion in February 2026. The delayed IPO reflects broader caution in the market amid global uncertainties. ³

4. Govt Amends Mutual Credit Guarantee Scheme to Boost MSME Manufacturing & Exports

The Central Government modified the Mutual Credit Guarantee Scheme (MCGS-MSME) to bolster manufacturing and export capabilities in the micro, small, and medium enterprise sector, aligning with Budget 2025-26 roadmap. The modifications aim to facilitate increased credit availability for purchase of plant and machinery by MSMEs, including exporter MSMEs, providing a major boost to India’s manufacturing and export sector. This initiative supports the vision of ‘Viksit Bharat 2047’ by strengthening globally competitive MSMEs. ⁴

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